The theme of dissertation defines the concept and the basic characteristics of services; with special emphasis on the service in the hotel industry. Purpose of hotel business is the same as all other business organizations and involves maximizing profits. Most important thing too achieve this goal is strategic thinking about all the prerequisites for sustainable business. Particular emphasis is placed on the selection of the hotel location, good capacity planning, co-operation of hotels and destination management in the development of content offer, quality of service, selection and motivation of people who through their work contribute to business success. The hotel is a complex system; requires good organization and people who will use their knowledge and skills to support the goals of its existence. By applying modern technologies and new scientific discoveries today's hotel industry has a greater possibility of influencing the improvement of its business results. One of such ways certainly is the application of Yield management. Using techniques of Yield management hotels can achieve maximum utilization of his limited capacity at the best price on that moment. The occupancy rate and the maximum achieved price of accommodations is main determinants of the hotel success and therefore the use of techniques Yield management should be more frequent in all Croatian hotels. Which management techniques and the extent to which Croatian hotel practice yield management, will be shown on the example of the hotel Olympia.